Non-technical Barriers to the Development of Non Food

Non-technical Barriers to the Development of Non Food Biomass Chains Manfred Woergetter http: //blt. josephinum. at/ Becoteps Workshop 8 -9 October 2009

Introducing myself • Graduated as Mechanical Engineer, University of Technology • Since 1975 R&D work on the energetic and material use of biomass at FJ-BLT: – – Production, standardization and use of transport biofuels Small scale biomass fired boilers Biofuel feedstock Bioenergy policies • Chair of the Renewable Raw Material WG of the Ministry – Advisor for the Ministry concerning the market introduction of bioenergy &renewable raw materials – Leader of the policy topic of the IEA Bioenergy Liquid Biofuels Tasks – Key Researcher in the Austrian Bioenergy Center/ BIOENERGY 2020+.

IEA Bioenergy since 1979 www. ieabioenergy. com • • One of the numerous “Implementing Agreements” 22 member countries Working in 12 Tasks Along the whole value chain 3

GHG emissions underestimated http: //www. unep. org/compendium 2009/PDF/compendium 2009. pdf Ban Ki Moon, Secretary-General of the UN: • Climate change is accelerating much faster than was previously thought • New scientific evidence suggests that irreversible changes may already have been reached or even overtaken • Climate change, more than any other challenge facing the world, is a crisis that will require strong and global action World energy outlook 2008: • Global temperature up by 6 OC

Size of the challenge underestimated http: //www. worldenergyoutlook. org/docs/weo 2008/WEO 2008_es_english. pdf World energy outlook 2008 • Preventing catastrophic damage requires a major decarbonization of world energy sources • Radical actions by governments, coordinated by international mechanisms are needed • China and India will account for half of the world primary energy demand between 2005 and 2030, collectively Non-OECD countries account for 87% of the increase

Bioenergy can play an main role http: //www. ieabioenergy. com/Media. Item. aspx? id=6360 IEA Bioenergy confirms the role of Bioenergy. • Sustainable biomass scenarios indicate an annual potential of 200 and 500 EJ/yr. • With a projected world primary energy demand by 2050 of 1000 EJ (500 EJ in 2008), bioenergy may contribute a quarter or even more to the future global energy mix

Bioenergy in the global primary energy mix Agric. crops and byproducts Waste

A wide variety of bioenergy routes

Bioenergy techologies for heat and power

Examples on bio transport fuel routes

Development of renewable energy + 7%/y is extremly ambitous!

Insufficient development in EU http: //ec. europa. eu/energy/renewables/progress_report_2009_en. htm Communication from the Commission to the Council and the European Parliament COM(2009) 192 final • A progress report of the Commission highlighted the patchy progress of RES • Indicative 2010 targets will be failed Why? + 7%/y is extremly ambitous!

NTBs to Liquid Biofuels in the ALTENER funded NTB-net (1996) • • Agricultural barriers Economic and financial barriers Industry Legislation Market Environmental impacts Public www. ademe. fr/htdocs/presentation/actioneuropeenne/webaltener/defaultbiocarb. htm Barriers also typical for other bioenergy pathways

Agricultural barriers to Biodiesel (1996) • Blair House Agreement of the WTO limits the agricultural production of raw materials • No guarantee for raw material production • Lack of contracts between agriculture and industry • Insufficient awareness from farmers for new crops and new products No change Nearly no change

Economic and financial barriers (1996) • Raw material prices to high • Logistic and transport of raw materials expensive • Prices for non-food use lower than for food use • Reduced interest of farmers • Farmers and industry are more interested in income than in environmental benefits • Low competitiveness compared to fossil fuels No change Nearly no change No change

Industry (1996) • Lack of standardization and specifications of liquid biofuels • No guarantee for a stable raw material supply • High risk for investors • Lack of co-ordination between farmers, producers and user Success story No change

Legislation (1996) • Tax exemption – an must for liquid biofuels from agriculture Success story in some countries • No discussion on detaxation on the European level Success story

Market (1996) • No concepts on long-term marketing No change • No common strategy of farmers, producers and users No change • Small biofuels market • No measures for the stabilization of the raw material and product markets Success story in some countries No change

Environment (1996) • Environmental benefits not generally acknowledged, discussion of emissions controversy No change • Discussion on loss of biodiversity No change • Energy and environmental balances hard to compare No change • Knowledge of N 2 O emission of rape production unsatisfactory No change

Public (1996) • Lack of information for the general public on availability, properties and benefits of biofuels • Lack of information of policy makers and stake holders on the European, national and regional level No change Additional barrier: „Food versus fuel conflict“

Panel Discussion with Panellists from Industry, Academia and NGOs • Sustainability certification IEA Bioenergy Liquid Biofuels Task 39 Workshop Dresden (2009) – simple rules needed – global harmonisation favourable but may take 10 years • Main barriers to market implementation of 2 nd-generation – instability of political frameworks, – lack of market acceptance, sustainability not acknowledged – lack of economic feasibility • (International) roadmap could be supportive – target must be clear – concerted action of a number of countries needed – must be focused on a limited number of biofuel pathways

Additional barriers EU • No priority for energy and climat change in the Lisbon Treaty • 4 DGs involved in Bioenergy: TREN, AGRI, ENV, Research Lobbying: • Strong and industry driven lobbies for wind and photovoltaic • Patchy bioenergy lobby groups with diverted interests, heterogeneous appearance of the different bioenergy sectors

The challenge I • • • Understand complexity Develop long term strategies Concentrate efforts Establish roadmaps an stay on track Establish reliable political framework Form strong lobby groups Overcome lack of public acceptance Reduce cost along the whole Bioenergy value chain Increase agricultural productivity

The challenge II • Reduce life cycle emissions and improve energy balance • Convince – – – – Policy maker Farmer Investors Stake holder in industries The consumer and the general public NGOs Authorities The Press • Cooperate internationally www. ieabioenergy. com

Bioenergy roadmap urgently needed • Roadmap must include the whole value chain – – All biogenic feedstocks Logistic Conversion technologies All markets • Must be coordinated with – National action plans – Involved General Directorates – Existing platforms

Thank you for your attention!

My personal approach to NTBs • NTBs are not easy to handle for scientists and engineers • Time and money are the utmost limiting factor in the technological development • Economy is the outstanding challenge • All people like „Sustainable development“, but nobody will pay for it

Development versus development costs 105 Competition Mature technology 104 Demonstration Field tests Pilot plant First tests in practice Valley of death? Laboratory Literature study 101 Time

Output to input Agricultural productivity 1948 -96 in the US Input Outpu t Ouput: Input

World energy consumption until 2060 EJ/year Shell Scenario „Sustainable Growth“ 2050